Sivers Semiconductors Navigates a Pivotal Week as Index Entry Collides With 17% Short Interest and AGM Overhaul

Sivers Semiconductors enters OMX Stockholm, faces short squeeze with 17% float shorted, ahead of AGM vote on 15% dilution, board changes. Pipeline up 77%.

The stars are aligning — or clashing — for Sivers Semiconductors this week. The Swedish photonics and wireless chipmaker enters the OMX Stockholm Benchmark Index at today’s opening bell, triggering mandatory buying by index-tracking funds. That forced demand is landing on a stock where roughly 17% of the free float was out on loan as of late May, a stark jump from just 1.6% at the start of March. The combination has traders eyeing the potential for a short squeeze.

The index inclusion, alongside parallel entry into MSCI indices, creates a natural buyer. Passive funds must adjust their holdings, which typically boosts volumes and puts upward pressure on the share price. For anyone betting against Sivers, the timing is awkward. Short sellers now face the risk of being caught in a squeeze as index-related buying meets elevated borrow demand.

AGM Vote Looms Large on June 15

Just two weeks after the index reshuffle, shareholders gather in Stockholm for the annual general meeting. The agenda is packed. The board is seeking authorization to issue up to 53.8 million new common shares, representing dilution of roughly 15%. Proceeds would fund organic growth, potential acquisitions, and a planned secondary listing on the Nasdaq in New York.

The board itself is being remodelled. Vice Chairman Tomas Duffy, founding investor Erik Fallström, and director Keith Halsey are stepping down, signalling the exit of the Scandinavian founding generation. In their place, Joakim Nideborn, a former CFO of listed technology companies, is proposed as the new vice chairman, alongside Helena Svancar, who brings more than two decades of international leadership experience.

Investors will also vote on a new employee option program, dubbed P11, covering up to 7.0 million options — roughly 2.0% on a fully diluted basis — vesting in three equal annual tranches. Shareholders must be registered in the share register by June 5 and notify the company by June 9 to vote.

Q1 Revenue Disappoints as Pipeline Surges

The index entry came just days after Sivers reported a difficult first quarter. Net revenue fell 22% year-on-year to 61.9 million SEK, with adjusted EBITDA swinging to a loss of 13.8 million SEK and operating income dropping to minus 41.5 million SEK. CEO Vickram Vathulya blamed currency effects and delays in US defence budget decisions, saying the expected revenue is now slated for the second half of the year.

Despite the weak top line, the opportunity pipeline has ballooned. Since the start of 2026, it has grown 77% to $799 million. Sivers reaffirmed its expectation for full-year revenue growth in 2026, though the trajectory will be back-end loaded. The net loss per share improved to minus 0.14 SEK from minus 0.19 SEK a year earlier, helped by a narrower net loss of 42.7 million SEK versus 49.9 million SEK. Operating cash flow, however, widened to minus 49.2 million SEK.

PCAOB Restatement Worsens Historical Figures

As part of preparations for a potential Nasdaq dual listing — announced in April — Sivers has restated its consolidated accounts to US PCAOB standards. The impact is significant. For 2024, reported revenue fell from 243.7 million SEK to 219.2 million SEK, and the net loss expanded from 116.3 million SEK to 183.9 million SEK. The 2025 numbers also deteriorated: revenue edged up to 306.6 million SEK, but the net loss ballooned from 186.5 million SEK to 222.6 million SEK. Management said the groundwork for the US listing is largely complete, but the timing and structure will depend on market conditions.

Defence Orders and Production Milestones

On the operational front, Sivers has secured a development contract from a leading US defence contractor. The company also confirmed the second funding phase of its EW-Star project under the US CHIPS Act, contingent on hitting technical milestones in the first year. The programme develops broadband antenna arrays for electronic warfare, radar detection, and secure communications.

For automotive LiDAR, production with a major carmaker is on track for the fourth quarter of 2026. In 5G and 6G, the Daybreak beamforming ICs for FR3 applications are now generally available. Management sees 2027 as the year of series production for AI, LiDAR, and satellite communications.

Convertible Bond and Insider Probe Cast Shadows

The AGM will also vote on approval of a $12.0 million convertible bond issued on March 3, 2026, carrying a 10.85% annual interest and maturing at the end of 2029. Meanwhile, the Swedish Economic Crime Authority is investigating whether information about the Nasdaq listing plans leaked before the official announcement in April. No violations have been confirmed, but the regulatory risk remains.

DNB Carnegie analysts called the quarterly report mixed, praising the pipeline growth but cautioning that current revenue remains too low relative to the cost base. Profitability is not expected before 2028. The next concrete data point comes on August 6, when Sivers publishes its half-year report.